This week has seen a price recovery for key cryptocurrencies including bitcoin, ethereum, and others. The second-most valuable cryptocurrency in the world, Ethereum (ETH), was able to hold above $1,500 on early Saturday morning.
Since a tentative September date for the Ethereum Mainnet Merge was announced, the coin has been experiencing a bullish run. Since demand is still relatively low, the present level of ETH may help it rise above $2,000 by the end of July.
For several months now, the Ethereum community has been getting ready for the switch to Ethereum 2.0. A significant update will be made available in August after the merge, which will happen soon.
In addition, the market rebound means that many investors may purchase ETH out of concern that they will miss out on the reduced costs. In reality, addresses with more than 100 ETH have been rapidly increasing over the past three months, which has increased the pressure on the bulls.
Many think that the merger will increase the value of ETH and that the most recent decline in price over the past few months might be the last one. The same indicator suggests that some outflows from those addresses have occurred following the most recent surge.
Are Investors Stocking ETH?
The realized capitalization of ETH has decreased throughout the course of the month. This shows that the majority of buyers paid less than the price at which ETH is now trading. Thus, many of the buyers over the past three months are in the black.
These indicators show that investors have been buying a lot of ETH in advance of the merger. The fact that there was no quick selloff that followed indicates that many of them are seeking medium- to long-term returns. A large number of ETH owners have also chosen to stake their ETH before the merger.